METROPOLITAN Waterworks and Sewerage System (MWSS) Administrator Reynaldo V. Velasco on Tuesday underscored the successful privatization of water service through public-private partnerships (PPP) with Maynilad Water Services Inc. and Manila Water Co. Inc.
In a statement, Velasco said the PPP framework was a success in efficiently providing potable water in Metro Manila.
The month of August marks the 20th year that MWSS put on a successful PPP with Maynilad and Manila Water. In August 1997 the Ramos administration entered into a 25-year concession agreement with two private consortia comprised of international and local partners. The agreement shifted MWSS’s operational responsibilities to Maynilad for the West Zone and Manila Water for the East Zone.
Velasco said, prior to the PPP, “there was generally poor service coverage all over the metropolis, which was only 69 percent of the service area”.
He added two decades ago, unaccounted-for water was more than 70 percent and there was inefficient service with low water pressure and limited water availability, high non-water revenue and minimal sewerage coverage. Aside from these problems, Velaso said there were “rigid procurement procedures resulting in delays in project implementation and inefficient.”
The MWSS chief claims the privatization of the MWSS has led to 96-percent expanded service delivery in terms of population coverage and water availability and increased operational efficiency with dramatic reductions in “nonrevenue” water to 69 percent (Manila Water) and 30 percent (Maynilad). Likewise, Velasco said the privatization of MWSS reduced reliance on the national government to finance the agency’s fund shortfall and its capital expenditure.
Sewerage services improved by new wastewater and sewerage treatment plants throughout Metro Manila, he added.
The Ayala-owned Manila Water serves a population of approximately 6.3 million people in the East Zone encompassing 23 cities and municipalities, including Makati, Mandaluyong, Pasig, Pateros, San Juan, Taguig, Marikina, Quezon City and Manila, as well as various towns of Rizal.
The company also offers pipe-laying and integrated used-water services, as well as sells purified water in selected areas in Metro Manila; bulk water in the province of Cebu; as well as managing and operating water systems in Cavite, Clark, Boracay, Tagum and Zamboanga, among others.
Maynilad is also now on its 20th year of operations after the consortium of Benpres Holdings Corp. and Suez Lyonnaise de Eaux won the exclusive right to provide water and wastewater services in the West Zone. Ten years ago the DMCI-MPIC Water Co., a joint venture between Metro Pacific Investments Corp. (MPIC) and DMCI Holdings Inc. (DMCI), took over Maynilad and launched a five-year investment program to rehabilitate the company and its operations.
Since its reprivatization, Maynilad has spent over P47 billion to improve and expand its water services, according to Maynilad President Ramoncito Fernandez. As a result, over 9 million people in Valenzuela City down to Cavite City are now enjoying safe, reliable water supply.